AMD’s second quarter saw revenue and non-GAAP profit both exceed Wall Street expectations, yet the market reacted negatively. Management attributed the quarter’s results to robust adoption of its EPYC server CPUs and Instinct accelerators, particularly within the data center segment, which now makes up nearly 60% of total revenue. CEO Lisa Su highlighted “record server CPU revenue” and noted that sales were powered by cloud and enterprise demand, as well as broader adoption across industries ranging from healthcare to financial services. Declines in gaming revenue partially offset these gains, while embedded segment sales improved, driven by networking and aerospace customers.
Is now the time to buy AMD? Find out in our full research report (it’s free for active Edge members).
AMD (AMD) Q2 CY2026 Highlights:
- Revenue: $11.54 billion vs analyst estimates of $11.35 billion (50.1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $1.66 vs analyst estimates of $1.61 (3.1% beat)
- Adjusted EBITDA: $3.32 billion vs analyst estimates of $2.88 billion (28.7% margin, 15.3% beat)
- Revenue Guidance for Q3 CY2026 is $13 billion at the midpoint, above analyst estimates of $12.63 billion
- Operating Margin: 17.3%, up from -1.7% in the same quarter last year
- Inventory Days Outstanding: 152, down from 160 in the previous quarter
- Market Capitalization: $766.5 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMD’s Q2 Earnings Call
- Thomas O'Malley (Barclays) pressed for insight on the timing and magnitude of crossover growth between data center GPU and CPU businesses; CEO Lisa Su replied both segments would see substantial growth into 2027, with AI accelerators becoming a larger driver.
- Vivek Arya (Bank of America Securities) asked about AMD’s visibility into gigawatt-scale deployments and monetization per gigawatt; Su responded that demand from anchor customers like OpenAI and Meta is high, and revenue per gigawatt remains in the double-digit billions.
- Joshua Buchalter (TD Cowen) sought clarification on unit and average selling price (ASP) drivers for the server CPU business; Su explained both units and ASPs are rising, with capacity increases supporting future demand.
- Stacy Rasgon (Bernstein Research) questioned the interpretation of “acceleration” in data center growth; CFO Jean Hu clarified it refers to the second half outpacing the first half, not sequential quarterly increases.
- James Schneider (Goldman Sachs) inquired about customer diversity and readiness for the MI400 series ramp; Su stated a broader range of customers would contribute in coming quarters, with no major concerns about customer deployment readiness.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) the pace and scale of Helios AI platform deployments among major cloud and AI customers, (2) execution of new CPU and AI chip launches and their adoption in enterprise and cloud environments, and (3) resilience in client and embedded segment growth despite industry-wide component cost pressures and gaming headwinds. Progress in expanding the embedded design win pipeline and managing supply chain constraints will also be important indicators.
AMD currently trades at $469.33, down from $518.58 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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